Glenda Eichman is responsible for the Available-for- Sale Securities of the Walk-On Shoe Company. At December 31, 2019, the cost of the Available-for-Sale Securities was $900,000 and the market value was $925,000. During 2020, she sold Available-for- Sale Securities that cost $100,000 for $105,000. At the end of 2020 the cost of the Available-for-Sale Securities was $800,000 and the market value of these securities was $810,000. Assume Walk-On Shoe Company uses the Market Value Method.

Required:

1. Make the entry for the Available-for-Sale Securities on December 31, 2019, and show how this information would be reported on Walk-On’s financial statements?

2. Make the entry for the sale of the Available-for-Sale Securities during the year.

3. Make the entry for the Available-for-Sale Securities on December 31, 2020, and show how the events related to Available-for-Sale Securities would be reported on the Walk-On Shoe Company’s financial statements.